Companies' satisfaction with electric utilities hits record high

RP news wires, Noria Corporation
Continuing a steady upward trend since 2004, business customer satisfaction with electric utility providers has reached record high levels, according to the J.D. Power and Associates 2008 Electric Utility Business Customer Satisfaction Study released on February 21. The study's nationwide customer satisfaction index has increased from 690 points on a 1,000-point scale in 2007 to 697 in 2008.

The study is based on interviews with representatives of more than 13,500 U.S. businesses that spend between $500 and $50,000 monthly on electricity. Overall customer satisfaction is measured through six factors: power quality and reliability; customer service; company image; billing and payment; price; and communications. Businesses served by the 58 largest electric utilities in the United States report improvements in four of the six factors in 2008, with customer service and billing and payment factors registering the largest increases. Ratings for power quality and reliability and communications factors have also increased, while company image and price ratings have remained flat.

"Across the industry, utilities have made substantial gains in customer service and billing," said Alan Destribats, vice president of the energy utility practice at J.D. Power and Associates. "For example, providing a wide variety of payment options, giving customers electronic copies of billing statements and making customer service available 24 hours a day through utility Web sites are all particularly satisfying to business customers."

East Region
PPL Electric Utilities is the highest-ranking electric utility in the East Region with an overall customer satisfaction index score of 710. PPL has ranked highest in the region for seven of the past nine years. Other strong performers are Public Service Electric and Gas, FirstEnergy-East, Allegheny Power and Con Edison.

Midwest Region
For a second consecutive year, E.ON U.S. and MidAmerican Energy rank highest in a tie in the Midwest Region, each with an overall score of 728. Other utilities in the region with strong performances include Aquila, Consumers Energy and Xcel Energy-Midwest.

South Region
CPS Energy improves by 40 points and ranks highest with a score of 748. 2008 marks the first time that CPS Energy has ranked highest in the region. Other utilities with strong performances in the South Region include South Carolina Electric & Gas, Southern Company, Progress Energy and Tampa Electric.

West Region
Sacramento Municipal Utility District (SMUD) ranks highest in the West Region for a second consecutive year, achieving a score of 777. Other utilities performing particularly well in the region include L.A. Department of Water and Power, Salt River Project, Pacific Gas and Electric and Portland General Electric.

"Sacramento Municipal Utility District not only ranks highest in the West Region, but also earns the highest score of all the utility companies in the 2008 study, improving by 15 points since 2007," said Destribats. "In addition, SMUD leads the study in several key performance areas, with business customers reporting particularly high rates of outage call-backs, receipt of electronic billing statements, contact with members of the utility's senior management and awareness of SMUD's energy conservation and efficiency programs."

  The study results include the following key findings:

  -- Business customers report experiencing slightly fewer outages in the
     2008 study (5.7, on average) compared with the 2007 study (5.8). The
     average length of power outages decreased from 8.8 hours in the 2007
     study to 7.9 hours in the 2008 study.
  -- The percentage of businesses that report visiting their utility's Web
     site in the past 12 months has increased from 37 percent in the 2007
     study to 52 percent in the 2008 study. In addition, the number of
     businesses that typically pay their bill online has increased from
     12 percent to 14 percent within the past year.
  -- Approximately 37 percent of business customers report being aware of
     their utility's energy conservation and efficiency programs. Customer
     awareness of a utility's community outreach or conservation activities
     raised overall satisfaction by as much as 108 index points in the 2008
     study.


  Customer Satisfaction Index Scores
  (Based on a 1,000-point scale)
  East Region
  PPL Electric Utilities                  710
  Public Service Electric and Gas         706
  FirstEnergy - East                      705
  Allegheny Power                         702
  Con Edison                              701
  Energy East                             699
  Pepco Holdings                          693
  NSTAR Electric                          691
  East Region Average                     691
  Exelon - PECO                           682
  National Grid                           682
  Duquesne Light                          680
  Northeast Utilities                     672
  Baltimore Gas and Electric              665
  Long Island Power Authority             621

  Midwest Region
  E.ON U.S.                               728
  MidAmerican Energy                      728
  Aquila                                  719
  Consumers Energy                        712
  Xcel Energy - Midwest                   711
  Alliant Energy                          710
  Kansas City Power & Light               704
  We Energies                             703
  AEP - Midwest                           692
  Duke Energy - Midwest                   690
  FirstEnergy - Midwest                   689
  Midwest Region Average                  686
  Detroit Edison                          675
  Exelon-ComEd                            671
  NiSource                                666
  Westar Energy                           641
  Ameren                                  612

  South Region
  CPS Energy                              748
  South Carolina Electric & Gas           742
  Southern Company                        728
  Progress Energy                         727
  Tampa Electric                          723
  Duke Energy - South                     721
  South Region Average                    705
  Oklahoma Gas and Electric               698
  AEP-South                               695
  Florida Power & Light                   694
  Dominion Virginia Power                 681
  Reliant Energy                          678
  Entergy                                 673
  TXU Energy                              670

  West Region
  Sacramento Municipal Utility District   777
  L.A. Dept. of Water and Power           724
  Salt River Project                      722
  Pacific Gas and Electric                721
  Portland General Electric               717
  West Region Average                     703
  Southern California Edison              701
  Arizona Public Service                  700
  PNM Resources                           695
  Puget Sound Energy                      682
  PacifiCorp                              681
  Sierra Pacific Resources                679
  Xcel Energy - West                      672
  San Diego Gas & Electric                662